Use Figure: Fiscal Policy II. If the economy is operating at point A, then there is _____ gap, and the government should use _____ fiscal policy to close this gap.
Fiscal Policy II
A) an inflationary; an expansionary
B) a recessionary; an expansionary
C) an inflationary; a contractionary
D) a recessionary; a contractionary
Correct Answer:
Verified
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